Bill Text: TX HB2420 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for wages paid to certain employees by certain new businesses located in small municipalities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-13 - Referred to Ways & Means [HB2420 Detail]
Download: Texas-2015-HB2420-Introduced.html
84R9543 KLA-D | ||
By: Kacal | H.B. No. 2420 |
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relating to a franchise tax credit for wages paid to certain | ||
employees by certain new businesses located in small | ||
municipalities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter R to read as follows: | ||
SUBCHAPTER R. TAX CREDIT FOR WAGES PAID BY CERTAIN | ||
TAXABLE ENTITIES IN SMALL MUNICIPALITIES | ||
Sec. 171.871. ENTITLEMENT TO CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions provided | ||
by this subchapter against the tax imposed under this chapter. | ||
Sec. 171.872. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter if the taxable entity: | ||
(1) on or after September 1, 2015: | ||
(A) is chartered or organized; and | ||
(B) first begins doing business in this state in | ||
a municipality with a population of less than 3,000; and | ||
(2) is not substantially similar in ownership and | ||
operation to another entity doing business in the municipality | ||
described by Subdivision (1)(B) before the taxable entity was | ||
chartered or organized. | ||
Sec. 171.873. AMOUNT OF CREDIT. The amount of the credit is | ||
50 percent of the wages paid by the taxable entity before the second | ||
anniversary of the date the taxable entity first began doing | ||
business in a municipality described by Section 171.872(1)(B) to | ||
each employee who: | ||
(1) begins employment with the taxable entity on or | ||
after September 1, 2015, in a full-time employment position that is | ||
located or based in that municipality; and | ||
(2) is a resident of this state. | ||
Sec. 171.874. APPLICATION FOR CREDIT. (a) A taxable entity | ||
must apply for a credit under this subchapter on or with the tax | ||
report for the period for which the credit is claimed. | ||
(b) The comptroller shall promulgate a form for the | ||
application for the credit. A taxable entity must use the form in | ||
applying for the credit. | ||
Sec. 171.875. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
taxable entity may claim a credit under this subchapter for wages | ||
paid during an accounting period only against the tax owed for the | ||
corresponding privilege period. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2016. |